Re: Amtrak lost $800 million on soda and burger sales
Author: Bill
Date: 08-03-2012 - 11:16
I suspect Mark is onto something in terms of costs. Allocation of overheads is almost always the cause of silly figures like this. They have probably allocated the costs of the car purchase and maintenance, as Mark suggests, along with the costs of the Amtrak system itself to get these numbers.
Any service like this needs to be evaluated on what its contribution or cost is without allocated overheads.
Of course, using allocated costs can make anything into a money losing proposition. And if you have a political axe to grind....